COMMENTARY: Renewable energy is not a cheap alternative

Several government officials in the Caribbean region have been promoting renewable energy, particularly wind and photovoltaic (PV) solar, as a panacea for making electricity more affordable in their respective territories.  Indeed, I am aware that in a couple of small islands in the Organisation of Eastern Caribbean States (OECS), ministers of energy are pushing the narrative that their goal is to move away completely from any conventional fossil fuel-based generation and rely solely on wind and solar power and possibly some battery storage.

Unfortunately, this kind of narrative has gained traction with some of their citizenry, the majority of whom are unfamiliar with the hard science and engineering realities pertinent to generation of electrical energy and associated transmission and distribution delivery systems that bring power to homes, commercial establishments and industries. It always makes me wonder whether the technocrats charged with advising these government officials proffer proper guidance so that these unrealistic narratives are not propagated time and time again.

In the context of our relatively small island electric systems in the Caribbean, the notion that renewable energy is cheap and will lead to lower electricity rates is not entirely true.  In fact, there are instances where the case could be made that the cost of renewable penetration may precipitate an increase in rates, albeit with the benefit of lower harmful emissions due to displacement of fossil fuel-fired generating assets.   In these parts, unlike in the more developed countries, there are no government subsidies to promote renewable generation.  A good parallel is a potable water. Just as water is a natural resource, getting clean water to our homes and businesses require a number of intermediate stages – collecting, purifying, pumping and distribution – that involves both significant capital and operational costs. Water utilities in the region are for the most part heavily subsidized by the respective governments to keep the cost to the consumer at a reasonable level.

There is no doubt that renewable energy has a role to play in transforming the energy landscape in the wider Caribbean, given the region’s dependence on fossil fuels– in most cases heavy fuel or diesel.  Price volatility of these fuels is a major contributing factor to the high electricity rates in the region.  However, in many of the smaller islands that make up the Caribbean region, there are several limiting factors that inhibit the development of renewable generation on a scale that would lead to any significant reduction in electricity rates.

In the smaller Caribbean islands, the lack of suitable real estate, mainly in terms of size and topography, is a key limiting factor in the development of wind and/or PV solar generation of any significant capacity that can influence electric rates.  In Grenada, for example, where the relatively new Electricity Act (2016) makes provisions for creating a competitive market for renewable generation, wind and/or PV solar development would not be possible on a scale that would interest any credible investor. To those who are thinking on a grander scale, I don’t foresee a move to deploy wind turbines in Grenada’s coastal waters now or in the immediate future.

Taking a further closer look at wind and PV solar, there are some territories in the region where utility-scale wind and PV solar generation have benefitted utilities by way of displacement of fuel and consequently a reduction in their fuel costs (and the added benefit to the particular country in terms of savings in foreign exchange). Aruba and Curacao are two examples, each having approximately 30 MW of installed wind capacity, with plans to install more wind generation in the future including PV solar. Both territories are relatively flat and have the available land area for deploying these renewable resources.  Jamaica is another territory where there has been a good level of utility-scale wind and PV solar installations – a total of 102 MW of wind and 57 MW of PV solar – majority of which has been developed through a competitive bidding process that was open to Independent Power Producers (IPPs).

This discussion would not be complete without the mention of rooftop PV solar installations by residential, commercial, and industrial customers. To date, in most of these islands, such installations have been relatively few and certainly not of sufficient scale to have any real impact on the electric system. However, there are cases (one example is Barbados with some 28 MW of distributed PV solar), where this conglomeration of distributed PV solar generation would certainly have an effect on the electric system.

By displacing existing conventional generation during unpredictable times of the day, the stability of the electrical grid could be threatened due to lack of inertia (inertia here means stored kinetic energy of the rotating generators) on the system and inadequate ramp rates on conventional generators to respond to the variability inherent in wind and PV solar generating assets.  Maintaining system stability either by having adequate spinning reserve or adding static reactive (VAR) compensation adds to the cost of high renewable penetration and may erase any benefits accrued by way of fuel savings.

With distributed non-firm renewable sources such as wind and PV solar, electric utility system planners must consider the effect on systems such as rooftop PV solar during the incidence of a tropical storm or hurricane. By their very nature, these systems are not hardened to the extent that a central facility such as a conventional power plant is reinforced to withstand hurricane-force winds or other natural disasters such as earthquakes.  Both electric utility system planners and regulatory agencies must also be cognizant of possible rate inequality (depending on the tariff-related to private production of renewable energy) given the fact that rooftop PV solar installations are mostly affordable to the more affluent members of the society.

Another renewable resource, geothermal generation, has been heavily promoted in some territories over the last several years, namely, in Dominica, Grenada, St. Vincent, and St. Lucia.  Development work in these territories has proceeded at a snail’s pace given the enormous capital involved just for exploratory drilling.  The majority of the funding for these exploratory works has been by way of grants from friendly governments.

With the possible exception of Dominica, recent attempts at exploration have been either technically inconclusive or of dubious economic feasibility.  In the case of Dominica, the geothermal reservoir potential has been estimated to be about 200 MW and the electric utility, DOMLEC, through a newly formed subsidiary company, is seeking offers from developers to construct initially a 10 MW plant with the possibility to further develop the reservoir to facilitate export of power to nearby Guadeloupe.

Recently, there have been some developers pitching waste to energy type generation to some Caribbean islands. The feedstock is of course waste (garbage). One approach being promoted involves a sorting process of the waste and certain components treated to produce a synthetic gas – known in the industry as syngas.  The idea is to burn this syngas in a reciprocating engine to produce electricity.

There are two issues with this approach.  The first is that to make the venture economically feasible, waste would have to be imported since as is often the case in these small islands, sufficient garbage is not produced locally.   The second is that syngas usually consists of significant proportions of carbon monoxide (CO), carbon dioxide (CO2) and Hydrogen (H2) and it has a relatively low calorific value (heat content) compared to other gaseous fuels.  This makes it difficult to burn in high output reciprocating gas-fired engines. I will not elaborate on any mass-burn technology for generating electricity from waste as it is certainly not applicable for the region due to reasons of scale and environmental concerns.

The vision to attain 100% renewable generation is a laudable one but that goal must be pursued in a cloak of reality.  In our Caribbean region where the most prominent renewable resources are wind and PV solar, utilities are aware that when these resources become part of their generation portfolio, they represent non-firm capacity with outputs varying minute by minute in the most extreme case. Without resorting to the complex engineering equations relating to stability of the electric system, it is easier to understand that at any given time the power generated must match the load on the system so that the stability of the power grid remains intact (meaning that your home or business will not be subjected to power surges or outages).  This intricate balance is difficult to maintain when sources of generation like wind or PV solar change rapidly, for example, when the wind intensity varies or a cloud causes shadows over the solar panels.

Without a doubt, renewable generation resources such as wind and/or PV solar can be integrated into existing electric systems with proper planning and system modeling.  Hybrid systems that comprise renewable generation, conventional generating assets and energy storage systems (using batteries) integrated with an overall computerized energy management system can produce positive results:  maximizing savings in operating costs and maintaining system voltage and frequency within statutory limits.

In summary, deployment of renewable generation may not always be a least-cost generation option for Caribbean electric utilities,but reducing carbon and other emissions harmful to the environment is a good tangential benefit.  Let’s keep in mind that ad hoc installation of wind power and/or PV solar without proper analysis of how the existing electric system will react is setting the stage for possible system instability.  And, for those who are currently advocating an“all renewable” based system with only wind, PV solar, and battery storage, well maybe they should have their candles ready.

 

About the author

Rodney George is Vice President Caribbean for Wärtsilä, and is responsible for business development, marketing and sales for the Caribbean region. Wärtsilä with corporate headquarters in Helsinki, Finland,is one of the largest energy companies in the world and is involved in power generation and marine energy systems.

 

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13 Comments

  1. skepticalOne
    June 4, 2020

    “By their very nature, these systems are not hardened to the extent that a central facility such as a conventional power plant is reinforced to withstand hurricane-force winds or other natural disasters such as earthquakes.”
    Oh please….. Your bias is obvious….Some communities in Dominica went over a year without distribution from central generation! It’s not the hardened facility that will fail but its the distribution network of above ground poles and wires! Some home solar systems were generating power the day after Maria.

  2. Country Man
    June 3, 2020

    If you add in the externalities and subsidies of fossil fuel based energy systems then the title of you commentary should read – Fossil Fuel is not Cheap. We also have to change our culture around the use of energy as small island states. This I think would be way more beneficial for a conversation than attempting to keep Fossil Fuel base energy systems as pathway to the future https://phys.org/news/2018-03-society-renewable-energy-sources.html

  3. Country Man
    June 3, 2020

    Rodney’s argument is not taking into consideration 2 key arguments 1) externality cost of fossil fuel base energy, in particular the social and environmental cost of fossil fuel base energy production systems and 2) the continual subsidies given to the fossil fuel industry https://www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs – without these subsidies fossil fuel would be way more costly that it is today. Let’s level the playing field and have a conversation. I imagine the conclusion would be different.

  4. Nigel Vidal
    June 3, 2020

    The Caribbean as a whole imports over 95% of the energy it consumes. No one is under any obligation to sell us any fossil fuel at any price. When we cling to idea that “renewable” must automatically equal “cheaper” then we miss the most important points; energy independence & sustainability. Mr. George is one of the most knowledgeable homegrown experts we have the Caribbean. I’m happy he took the time to write this, that DNO has shared it, and I hope that the various stakeholders take some time to read and consider.

  5. Batibou River
    June 3, 2020

    What all you know about renewable energy. Why don’t all you ask Skerrit, he is the master of renewable energy and climate resilience. May I point at that white elephant in the Roseau valley referred to as geothermal plant. More than US$30 million did our very own Mr. Climate-Resilience invest into this project making us believe we would live from geothermal energy the same way the Arabs live a life of luxury from crude oil and gas. Have all you guys congratulated your PM on wasting 30 million, or at least have some of you questioned him on this thing will be ready??? I’m asking too much of all you, aren’t I? POOR DOMINICA

  6. Roger Burnett
    June 3, 2020

    The writer makes many valid points, but as the person responsible for his company’s business development, marketing and sales the Caribbean region, I am surprised by his statement:

    “It always makes me wonder whether the technocrats charged with advising these government officials proffer proper guidance so that these unrealistic narratives are not propagated time and time again.”

    They may be advised but do they listen!

    I might add, Caribbean islands are blessed with natural beauty and this is particularly true for Dominica. Wind and solar structures on poles are blots on the landscape.

    And let’s not forget, somewhere in the world a huge amount of energy has to be expended to make the components. Also, storage batteries have to be replaced/disposed of after a relatively short working life.

    No matter how power is supplied, the best solution is low energy; whether it be for lighting, electronics or traction.

  7. Michael Norris
    June 3, 2020

    Thanks very much for this article, Mr. George. You were not being negative about renewable energy (RE) but rather realistic. Your rightly emphasised the need to have scale for RE to have significant impact on the electrical systems and economies in the small-island states of the Caribbean. Too many technocrats and politicians treat RE as a fad without thinking critically about the requirements. I appreciate the article and your attempt to keep it lucid for the literate but non-technical layman. I hope many policymakers in the region will come across your article and read it and learn from your judiciously reasoned analysis.

  8. Just Reading
    June 3, 2020

    So if one googles Wärtsilä, we will see a company builds some of the largest diesel engines and generators. The article may contain some rooted inclinations or prejudices.

  9. RE and me
    June 3, 2020

    This commentary is very true indeed and I do not see that he is saying that re isn’t good. It is just not the saviour for everyone. Many are sadly of the opinion that more re means less on the monthly bill but in most cases that is not the case when dealing with commercial scale re deployment. In the Caribbean we see installations of wind and solar and one wonders who engineered these installations. I have seen thewind and solar street lights along the roads and I will just leave it at that. Waste of money. Now it is hard to argue with Dominica geothermal potential, current peak usage and export potential. We are blessed in that we can actually be economically viable provided of course we do not mismanage .
    The writer manages deisel generation facilities and could be trying to keep his interest but he was speaking factually.

  10. kubulol
    June 3, 2020

    DA had taken advantage of buying cheap oil from Venezuela .
    But this country is so in a bad shape today because of the dictatorship there, that though being an oil producer, Venezuela is now importing oil !!!! ( from another dicatatorship : IRAN )
    So alternate energies are a good opportunity ; but not all of them : wind energy creates a “visual pollution” in the so called “green island”
    Geothermal and solar look OK.

  11. June 2, 2020

    Mr George is surprisingly negative towards renewable energy considering his own employer says, “Wärtsilä Energy Business leads the transition towards a 100% renewable energy future.”

    Either way, however, the two most important paragraphs in this essay are about geothermal energy, which even he admits may be viable in Dominica to the point of becoming an export industry.

    • not-a-scientist
      June 2, 2020

      I don’t think Mr. George’s core message was that renewable energy production is bad or necessarily expensive for the region, but that ad-hoc connection of renewable energy generation to a grid designed for stable generator driven production is potentially dangerous and should be seriously studied BEFORE allowing large scale unpredictable generation to be connected to the grid. If it is not adequately studied and supplemented with sufficient battery storage, the end result can be grid instability and unexpected outages.

      This is the same study and analysis which is done in any developed nation by the electricity supply authority before allowing a customer to connect with solar, wind, or any other generation source. Our Caribbean grids being smaller than large countries, makes them more susceptible to these outages. We must therefor invest in energy storage as well as renewable energy production.

    • Interpreter Found
      June 3, 2020

      ***Wärtsilä Corporation is a Finnish company which manufactures and services power sources and other equipment in the marine and energy markets. The core products of Wärtsilä include technologies for the energy sector, including gas, multi-fuel, liquid fuel and biofuel power plants and energy storage systems***

      The company while it may be looking forward to renewable energy, is currently massively invested in a fossil fuel market.

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